The property tax on a rental house owned by Mr. Janey increased by $1,200 this year. Mr. Janey increased the monthly rent charged to his tenant, Ms. Lacey, by $45. Who bears the incidence of the property tax increase?

Question

Quizplus · Accepted Answer

Both Mr. Janey and Ms. Lacey bear the incidence of the property tax increase. Mr. Janey faces increased costs, and Ms. Lacey faces increased rent, sharing the financial burden.

The Property Tax on a Rental House Owned by Mr